HSBC’s Gulliver warns Brussels over euro-clearing grab

Fragmentation of euro-clearing will lead to higher costs and business being moved to the US or Asia, says the bank CEO

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By

Lucy McNulty

July 11, 2017 Updated: 4:36 p.m. GMT

The chief executive of HSBC has warned that repatriating the clearing of euro-denominated derivatives to the European Union could benefit cities in US and Asia more than those in the bloc.

European authorities made clear in June that they want to change the way they regulate the clearing of trades denominated in euros – most of which is done in London - as a result of Brexit. The EU's executive arm, the European Commission, wants to be able to force clearing houses of "key systemic importance" to move into the bloc...